1) What are the net exports in Hobbiton, what are the net factor payments with abroad? 2) National accounting is a piece of magic, and like all things magic it is related to the number three: three ways to the goal. Using these three ways, explain Sam in detail what Hobbiton's GDP was in the first year of the Shire reckoning. Keep in mind that the mayor has never heard about this magic, so you will have to be very pedantic! Make sure he does not confuse the three ways. 3) What is national saving in Hobbiton as a percentage of GDP, i.e. the savings rate? 4) Would your answer to 2) change, if Sam was simultaneously the mayor, the farmer (he, after all, is quite an accomplished gardener) and the proprietor of the Green Dragon? 5) Would your answer to 2) change, if you had also data on the gifts that the hobbits gave away on their birthdays, usually small items of mixed usefulness. Remember: Hobbits give gifts on their own birthdays. 6) For the second year of the new Shire reckoning, GDP is found to be 200 Shire-$. Does that necessarily mean that Hobbiton is worse off? 3